GAO

United States General Accounting Office

Report to Congressional Requesters

February 2000 NATIONAL SERVICE

PROGRAMS

Two AmeriCorps

Programs’ Funding

and Benefits

GAO/HEHS-00-33

Page 1 GAO/HEHS-00-33 AmeriCorps Funding and Benefits

Contents

Letter 3

Appendixes Appendix I: Scope and Methodology 22

Appendix II: Comments From the Corporation for National Service 26

Related GAO Products 29

Tables Table 1: Budgeted and Matching Funds per AmeriCorps*NCCC and

AmeriCorps*State/National Participant for Program Year 1998-99 9

Table 2: Summary of Selected AmeriCorps*State/National Participant

Funds, Program Years 1994-95, 1996-97, and 1998-99 10

Table 3: Selected Characteristics of Job Corps CCC and

AmeriCorps*NCCC Programs and Participants 12

Table 4: Comparison of Selected Benefits Afforded Participants in Two

AmeriCorps Programs and Enlisted Personnel Entering the Military 14

Table 5: Enrollment Status and Completion and Attrition Rates for

Participants in All AmeriCorps Programs for Program Years 1994-95

to 1997-98 17

Table 6: Education Awards Earned and Used in All AmeriCorps

Programs in Program Years 1994-95 Through 1997-98 17

Abbreviations

CCC Civilian Conservation Centers

CNS Corporation for National Service

FTE Full-time equivalent

GED General equivalency diploma

NCCC National Civilian Community Corps

OMB Office of Management and Budget
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Page 3 GAO/HEHS-00-33 AmeriCorps Funding and Benefits

United States General Accounting Office

Washington, D.C. 20548

Health, Education, and Human Services Division

B-282553 Letr

February 15, 2000

The Honorable Christopher S. Bond

Chairman, Committee on Small Business

United States Senate

The Honorable Charles E. Grassley

United States Senate

The Honorable Peter Hoekstra

Chairman, Subcommittee on Oversight and Investigations

Committee on Education and the Workforce

House of Representatives

AmeriCorps is the largest national and community service program since

the Civilian Conservation Corps of the 1930s and is in its sixth year of

operation. Administered by the Corporation for National Service (CNS),

which was authorized by the National and Community Service Trust Act of

1993 (P.L. 103-82), AmeriCorps consists of four programs that allow

participants to earn education awards to help pay for their postsecondary

education in exchange for performing community service.1 CNS is

statutorily required to encourage citizens to engage in national service,

rewarding those who serve with educational opportunities and providing

tangible benefits to the communities in which service is performed. CNS

estimates that it spent $477 million in fiscal year 1999 to support about

53,000 AmeriCorps participants.

1

The four programs are AmeriCorps*State/National, which is the largest;

AmeriCorps*VISTA; AmeriCorps*National Civilian Community Corps; and

AmeriCorps*Education Awards.
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Page 4 GAO/HEHS-00-33 AmeriCorps Funding and Benefits

Since 1995, we have issued seven reports focusing on AmeriCorps program

resources and benefits.2 Because of continuing concern about the average

annual cost per AmeriCorps participant, you asked us to identify and

compare these per participant costs with costs from other similar

organizations providing community service. Specifically, we agreed to (1)

review costs for AmeriCorps participants in two major AmeriCorps

programs, AmeriCorps*State/National and AmeriCorps*National Civilian

Community Corps (NCCC), and who bears those costs; (2) compare cost

data for AmeriCorps*NCCC with similar data from the Department of

Labor’s Job Corps Civilian Conservation Centers (CCC) and explain

reasons for any major differences; (3) compare AmeriCorps participant

benefits with those afforded entry-level military personnel; and (4)

describe information available on the results of AmeriCorps programs.3

In this report, we provide cost and other data for the 1998-99 program year,

including information on overhead expenses, education awards, and child

care benefits. We present information on participant costs for both the

AmeriCorps*State/National and AmeriCorps*NCCC programs, including

non-CNS costs as appropriate. We were not able to report comparable

participant cost information for AmeriCorps*Education Awards and

AmeriCorps*VISTA participants because information on the non-CNS costs

of these programs was not available. We chose Job Corps CCC as the

civilian program to compare with AmeriCorps*NCCC because it is one of

the few full-time residential programs for youths that is federally operated

and administered, and it does not receive AmeriCorps grant funds, unlike

many state and local youth service and conservation corps groups. In the

absence of reliable actual expenditure data, we relied on information from

CNS’ budget and on data from its grant application database to estimate the

costs associated with AmeriCorps participants.4 To verify the accuracy of

the data in CNS’ grants database, we reviewed information from a random

sample of 60 grant files. In addition, we collected information from CNS on

participants’ rates of completion and attrition and on their “earning” and

2

A list of GAO products on AmeriCorps appears at the end of this report.

3

AmeriCorps*State/National receives its funding from a single appropriation and is referred

to by CNS as one program; however, the program operates two separate grant application

processes, one for state programs and one for programs that operate in more than one state,

or national programs.

4

CNS’ Office of the Inspector General has issued numerous reports on CNS’ lack of

creditable financial accounting data and the Congress has directed CNS to make financial

management reforms.
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use of education awards. We also reviewed CNS’ strategic and performance

plans, which are required by the Government Performance and Results Act

of 1993. For more detail on our methodology, see appendix I.

Results in Brief AmeriCorps*NCCC is a full-time residential service program administered

by CNS. Service activities focus on environmental issues, disaster relief,

tutoring children, and rehabilitating public housing in urban areas.

AmeriCorps*State/National consists of a wide variety of grantee programs

run by not-for-profit organizations, local and state government entities,

Indian tribes, institutions of higher education, local school and police

districts, and partnerships among any of them. State established

commissions, partly funded by CNS, oversee most eligible grantee

programs, CNS being primarily responsible for determining programs’

eligibility for federal funds and for assisting the states in carrying out their

program responsibilities. The AmeriCorps*NCCC program is completely

funded by CNS, whereas the AmeriCorps*State/National program is funded

jointly by CNS, program grantees, and state commissions. For program

year 1998-99, CNS budgeted $23,426 per NCCC participant and $14,857 per

State/National participant. Program grantees and state commissions added

funds estimated at $8,717 per State/National participant for program year

1998-99. CNS has the goal of reducing its share of the costs of AmeriCorps

grantee programs, but CNS data show that while the selected participant

funding that we reviewed decreased between program years 1994-95 and

1998-99 in State/National, AmeriCorps’ largest program, CNS’ share of

those participant costs actually increased from 52 percent to 55 percent.

Turning to the second program we reviewed, the budgeted participant

costs of Job Corps CCC are higher than those of AmeriCorps*NCCC. For

program year 1998-99, these costs were $28,933 and $23,426, respectively.

While these are both residential programs for youths, they differ in ways

that make Job Corps CCC more costly. For example, Job Corps CCC

participants can receive some assistance after leaving the program, such as

help in finding employment, entering military service, or furthering their

education, and these costs are included in the average costs for all

participants. In contrast, NCCC does not offer postservice assistance.

AmeriCorps participants receive less in benefits than entry-level military

personnel. While both AmeriCorps and the military provide their

participants a living allowance, health benefits, child care assistance, and

the opportunity to accumulate funds to pay for education, these benefits

are higher in the military, reflecting the greater risks and responsibilities of
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military service. Moreover, entry-level military service is potentially the

first step in a 20-to-30-year career, whereas AmeriCorps is a service period

during which some funds for college are earned. Most new military recruits

are legally obligated to serve at least 4 years, while AmeriCorps’ service is

voluntary for a 1-year (1,700-hour) term. Military personnel also receive

benefits not available to AmeriCorps participants, including enlistment

bonuses, leave accrual, and qualifying service toward retirement pay.

CNS generally reports program results as the amount of service performed

by AmeriCorps participants. In addition, CNS collects and reports data

such as the number of participants enrolled and the number who have

completed service and earned education awards. These data, however, do

not measure AmeriCorps programs’ progress toward the strategic goals of

strengthening communities and improving participants’ lives, as required

by the Government Performance and Results Act of 1993. A CNS evaluation

identified a number of results-oriented program accomplishments, but CNS

has not yet used this information to set useful performance measures in its

strategic planning documents. We are therefore recommending that CNS

establish performance indicators that focus on program results or

outcomes.

Background CNS administers and funds the AmeriCorps*NCCC program, which is a 10-

month full-time residential program for men and women aged 18 to 24.

Participants live on a campus and serve in teams to complete a variety of

community service projects such as tutoring children and rehabilitating

public housing in urban areas. Full-time NCCC participants receive a $4,000

living allowance, room and board, and, if they complete their service

successfully, an education award ($4,725 for one term of service or $9,450

for the maximum of two terms that may be served) that they can use for up

to 7 years from the date they complete their service. NCCC participants are

also eligible for forbearance on student loan obligations while in service

and for some assistance with off-campus child care expenses.5

5

Forbearance means an arrangement to postpone or reduce the amount of a borrower’s

monthly payment for a limited and specific time period. The borrower is charged interest

during a forbearance. If AmeriCorps participants successfully complete their term of

service, CNS pays the accrued interest on their behalf.
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Although AmeriCorps*State/National is funded as a single program, it

operates two distinct grant application processes: one for state program

applicants and one for national nonprofit organizations and multistate

program applicants. At least two-thirds of the federal funds appropriated

for AmeriCorps*State/National go to state program grantees through state

commissions. CNS can provide the remaining funds directly to multistate

programs and national nonprofit grantees. The governor-sponsored state

commissions, which are partly funded by CNS, are responsible for

managing and distributing funds related to AmeriCorps state programs.

Since AmeriCorps began, 48 states and Puerto Rico have created

commissions.6 Eligible applicants for AmeriCorps national grants include

multistate programs, national nonprofit organizations, and professional

corps programs.7 CNS has oversight responsibility for these national

grantee programs. Grantees from both the state and national programs

provide participants with a living allowance (typically $8,730 for a full-time

participant), health insurance, child care, training, uniforms, travel,

transportation, supplies, equipment, and grantee administrative costs.

Grantees are required to contribute at least 15 percent of the living

allowance and other participant benefits.8 Grantees are also required to

provide at least 33 percent of their program operating costs such as staff

salaries, travel, and supplies. The funds furnished by the grantees are

referred to as grantee matching requirements.

AmeriCorps*State/National participants may serve full-time or part-time.9

Both NCCC and State/National participants generally earn an education

award when they successfully complete their term of service. In addition,

6

North Dakota and South Dakota and the District of Columbia do not have state

commissions. Programs in these locations may apply directly to CNS for an

AmeriCorps*State grant. CNS oversees them directly.

7

Professional corps programs may recruit and place qualified AmeriCorps members in

positions as teachers, nurses, doctors, police officers, lawyers, engineers, or other

professionals helping to meet critical needs in communities that have inadequate numbers

of such professionals.

8

The amount of the living allowance that may be paid with federal funds may not exceed 85

percent, with the remainder paid by funds raised by the program.

9

Full-time AmeriCorps participants must serve at least 1,700 hours during a period of not

less than 9 months and not more than 1 year. Part-time participants must serve at least 900

hours during a period of not more than 2 years. Reduced part-time participants may also

serve at least 300 hours in a summer program, or at least 450 hours over a time not to exceed

1 year.
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CNS may pay the accrued interest on participants’ student loans that were

in forbearance during their service. However, State/National participants

may elect to serve part-time or in summer programs, earning smaller,

prorated education awards when they successfully complete these shorter

terms of service.

CNS is required by the Government Performance and Results Act of 1993 to

set goals and objectives that will effectively measure the accomplishments

of AmeriCorps programs and participants. The act outlines a series of steps

in which agencies are required to identify their goals, measure

performance, and report on the degree to which those goals were met. CNS

must also develop annual performance plans that are to include annual

performance goals linked to its budget as well as indicators the agency will

use to measure performance against results-oriented strategic goals.

AmeriCorps’ NCCC

and State/National Are

Supported Primarily by

Federal Resources

For program year 1998-99, CNS funded all of AmeriCorps*NCCC’s $23,426

per participant costs and $14,857 (or 63 percent) of AmeriCorps*State/

National’s $23,574 per participant costs, with grantees and other non-CNS

organizations funding the remainder.10 (See table 1.) AmeriCorps*NCCC’s

per participant costs were slightly lower. For example, its administrative

costs were lower, in part because they did not include any state

commission costs, while these costs were incurred by State/National. As

shown in table 1, the two programs account for comparable costs

differently. For example, NCCC’s program costs were higher because its

participants receive room and board in addition to a cash living allowance.

State/National participants do not receive room and board but receive a

higher cash living allowance. The net effect of the accounting differences is

a very marginal difference in the total funds amount per participant.

Neither program’s budget included an amount for paying participants’

student loan interest payments, although CNS incurred these expenses in

both programs. In the State/National program, the share of grantee

matching funds per participant has decreased slightly since the program’s

inception, despite CNS’ goal of reducing its share of the costs of

AmeriCorps programs and increasing the share of grantee matching funds.

10Local sponsors of NCCC projects may provide materials and other in-kind assistance for a

project. CNS does not track or report the value of this assistance. Cost per participant is

calculated on a full-time equivalent (FTE) basis.
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Table 1: Budgeted and Matching Funds per AmeriCorps*NCCC and

AmeriCorps*State/National Participant for Program Year 1998-99

Note: Excludes interest subsidies for participants with eligible student loans.

a

Administrative costs is the allocation of CNS administrative funds to participants, including funding for

state commissions in the State/National program.

While CNS’ budgeted costs for the two programs we reviewed include

education awards and some child care costs, they do not take into account

the interest on qualified student loans.11 CNS spent $2 million on student

loan interest payments in fiscal year 1998, an average of $57 per

participant.12

Category NCCC State/National

Number of FTE participants 886 22,287

CNS grant or program funds $20,316 $10,029

Education awards $2,546 $2,546

Child care 0 $359

Administrative costsa $564 $1,923

Subtotal CNS funds $23,426 $14,857

Grantee matching funds 0 $8,328

State commission matching

funds 0 $389

Total funds per participant $23,426 $23,574

11CNS budgeted $359 per State/National participant for child care and nothing per NCCC

participant. CNS estimates it spent a total of $7.3 million on child care for State/National

participants and $12,000 for NCCC participants in fiscal year 1998.

12These cost estimates encompass student loan interest payments made in fiscal year 1998

for all AmeriCorps participants.
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CNS’ share of funds per State/National participant has increased slightly

since the program’s inception, despite its goal of reducing its share of the

costs of AmeriCorps programs. CNS grant funds awarded per

State/National participant decreased by 6 percent from program year 1994-

95 to program year 1996-97 but remained virtually unchanged in program

year 1998-99. (See table 2.) State/National grantees also reported declining

matching funds per participant, a decrease of 10 percent from program

year 1994-95 to program year 1996-97 and an additional 5 percent in

program year 1998-99. Because the decrease in grantee matching funds was

greater than the decrease in CNS funding, the CNS share of participant

funding increased by 2.3 percentage points. CNS officials told us that there

were several possible reasons why CNS’ share of per participant funding

increased. They said that there has been an increase in the number of new

grantees in State/National and some may have had difficulty raising

matching funds above the minimum requirements.13 In addition, grantees

may be underestimating on their grant applications the amount of matching

funds they will need for the program year.

Table 2: Summary of Selected AmeriCorps*State/National Participant Funds, Program Years 1994-95, 1996-97, and 1998-99

Note: Excludes interest subsidies for participants with eligible student loans.

a

Information for program years 1994-95 and 1996-97 was reported previously in National Service

Programs: Status of AmeriCorps Reform Efforts (GAO/HEHS-97-198R, Sept. 3, 1997). Funds per

participant do not include (as reported in table 1) administrative costs, education awards, and child

care because the data were not readily available for all three time periods.

b

Grantees or subgrantees of federal funds that either CNS or state commissions provide.

13A CNS official told us that grantees generally report matching fund sources above the

minimum statutory requirements of 15 percent living allowance and 33 percent operating

costs. If a grantee is not providing the minimum amounts of matching funds, CNS may take

one of several actions against the grantee program, ranging from requiring the program to

correct the problem and repay money owed to shutting the program down.

1994-95 1996-97 1998-99

Percentage change

1994-95 to 1998-99

Number of FTE participants 13,819 18,829 22,287 61%

CNS funds per participant $10,705 $10,023 $10,029 -6%

Grantee matching funds per participant $9,740 $8,758 $8,328 -14%

Total funds per participanta $20,445 $18,781 $18,357 -10%

Number of projectsb 298 475 589 98%
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CNS has the goal of reducing its share of the costs of AmeriCorps grantee

programs. In its strategic plan for fiscal years 1997-2002, CNS states that it

is increasingly entering into collaborative ventures with local sponsors in

which CNS funds are a much-reduced, even minor part of the investment

pool supporting service opportunities. CNS thus plans to reduce its own

costs per participant by helping projects decrease their reliance on CNS

funding.14

For its largest program, AmeriCorps*State/National, CNS’ planning

documents do not track with performance indicators either the reduction

of its share of participant costs or the increase of matching funds. CNS is

planning to conduct program evaluation studies during fiscal year 2000 in

an effort to create and set baselines for additional performance indicators.

One planned study is an analysis of the sources of matching funds for the

AmeriCorps*State/National grantees. Another is an analysis of the effects

of reductions in the allowable cost per participant in

AmeriCorps*State/National programs.

Job Corps CCC Is More

Costly Than

AmeriCorps*NCCC

The Job Corps CCC’s budgeted costs of $28,933 per student year for

program year 1998-99 were 24 percent greater than the $23,426 cost per

participant of NCCC. While both are federally administered residential

programs for youths, they differ in ways that make Job Corps CCC more

costly. The more at-risk population targeted by Job Corps CCC, as well as

the comprehensive services available 24 hours a day, 7 days a week,

provided to its participants, contributes to the high cost of the program. In

addition, Job Corps CCC assistance can continue after participants leave

the program through such activities as helping students find employment,

enter military service, or further their education, the cost of which Job

Corps CCC bears. In contrast, NCCC does not offer postservice assistance.

Job Corps CCC is one of the few residential employment and training

programs that the federal government administers. Job Corps trains

disadvantaged young people for jobs. Since few Job Corps participants

have completed high school, one of its principal offerings is to provide its

participants with the basic education leading to a high school diploma or

general equivalency diploma (GED). Additional Job Corps CCC services

14Throughout this report, we use the term “project” to describe the grantees or subgrantees

of federal funds that are provided either by CNS or the state commissions. We use the term

“program” to refer to AmeriCorps projects collectively.
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include vocational skills training, social skills instruction, counseling, room

and board, and health care. NCCC engages young people from all

backgrounds in teams to perform a variety of community service activities

with minimal supervision. Because most NCCC participants already have

completed high school, the training they receive is generally preparatory

for the areas in which they will serve, such as firefighting, disaster relief,

tutoring, first-aid, and basic construction skills. The major characteristics

of the two programs and their participants are compared in table 3.

Table 3: Selected Characteristics of Job Corps CCC and AmeriCorps*NCCC Programs and Participants

AmeriCorps*NCCC Job Corps CCC

Term of service 1 year or 1,700 hours Varies: averages about 7 months

Maximum length of service 2 years 2 years

Age limits 18 to 24 years old 16 to 24 years old

Minorities 20% 72%

Women 64% 40%

High school or GED More than 99% 22%

Cost per participant $23,426 $28,933

Room and board Provided Provided

Living allowance $4,000 per year; benchmarked against the

poverty level

Typically $25 every 2 weeks

($650 per student year)

Completion award $4,725 per term; $9,450 maximum taxable

benefit

Students earn cash bonuses averaging $1,500

depending on length of service and progress

toward goals

Use of completion award Must be used for higher education, to repay

an existing student loan, or for an approved

school-to-work program within 7 years of

completing service

Not restricted

Child care Up to $400 per month depending on need;

less than 1% usage rate in 1998

Not available

Basic education Rarely provided Provided

Social skills instruction Not applicable Provided

Counseling services Provided Provided; available 24 hours a day

Interest forbearance Provided Not applicable

Health insurance and health care Covers actual individual costs, except for $5

copayment; limited dental and eye care

coverage

Individual care; includes dental and eye care.

Centers have nurses, doctors, and dentists on

call

Postservice benefits None Assistance with finding employment, entering

military, or furthering education
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Military Enlistees

Receive Higher

Benefits Than

AmeriCorps

Participants

The benefits provided to entry-level military personnel exceed benefits that

AmeriCorps participants receive, partly because of the greater risks and

responsibilities associated with military service. Both AmeriCorps and the

military provide their participants a living allowance, health benefits, child

care assistance, and the opportunity to accumulate funds to pay for

education. However, the disparity in the amount of those benefits may

reflect AmeriCorps’ shorter (1-year) term, which may be canceled at any

time, whereas the military service obligation is for at least 4 years for most

new recruits and is potentially the start of a 20-to-30-year career. In

addition, military benefits may include enlistment bonuses, a family

separation allowance, leave accrual, and a qualifying service credit toward

retirement pay, none of which is provided to AmeriCorps participants.

We compared the benefits available to AmeriCorps*State/National and

AmeriCorps*NCCC participants (including child care) with the benefits

available to entry-level military personnel. (See table 4.) AmeriCorps

participants are eligible to receive funds to use for child care; military

personnel have child care facilities made available to them at a reduced

cost. For example, data from our October 1999 report on military and

civilian child care show that, depending on their income category, for the

1998-99 school year, active duty families paid between $38 and $97 per

week for child care in a military child development center.15 The average

weekly benefit available to an AmeriCorps participant ranges from $66 to

$92. In both AmeriCorps programs and the military, however, the majority

of the participants and entry-level military personnel are not parents and do

not need child care, although the benefit is available.

15Child Care: How Do Military and Civilian Center Costs Compare? (GAO/HEHS-00-7, Oct.

14, 1999).
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Table 4: Comparison of Selected Benefits Afforded Participants in Two AmeriCorps Programs and Enlisted Personnel Entering

the Military

a

Additional benefits may include an enlistment bonus, a family separation allowance, leave accrual,

qualifying service credit toward retirement pay, and certain special and incentive pay, none of which

AmeriCorps participants are allowed.

b

Some federal and some state guaranteed education loans provide for deferment of interest and

payments for up to 3 years while the borrower is in the military. A federal Perkins loan borrower can

also have up to 50 percent of his or her loan cancelled for military service in areas of hostilities or

imminent danger.

Pay and benefits for military personnel reflect the distinctive elements of

military service and are intended to compensate for the conditions,

hardships, unusual demands, and potential danger inherent in military

service but not normally found in civilian employment. While benefits that

support the institutional character of military service are an important

component of military compensation, determining what portion of a

service member’s pay is recompense for these special conditions is highly

Benefit AmeriCorps*State/National AmeriCorps*NCCC Entry-level militarya

Term of service 1 year or 1,700 hours 1 year or 1,700 hours Generally 4 years

Maximum length of

service

2 years 2 years Not applicable

Room and board Not provided Provided Provided

Living allowance Generally $8,730 per year; CNS

pays 85% maximum

$4,000 per year $12,067 per year for the lowest military

rank

Education award $4,725 per term up to $9,450.

Taxable benefit not indexed for

inflation

$4,725 per term up to $9,450.

Taxable benefit not indexed for

inflation

$19,008 maximum for 3 years’ service;

$1,200 personal contribution required.

Nontaxable benefit indexed for inflation

Use of education

award

Must be used for higher education,

to repay an existing student loan,

or for an approved school-to-work

program within 7 years of

completing service

Must be used for higher education,

to repay an existing student loan, or

for an approved school-to-work

program within 7 years of

completing service

May be used to pay for apprenticeship,

job training, or higher education or to

repay an existing student loan within 10

years of discharge

Child care Paid directly to participating,

qualified providers, depending on

need; 9% usage rate in 1998

Up to $400 per month, depending

on need; less than 1% usage rate in

1998

Partially provided; amount based on

family income; family pays a weekly fee

ranging between $38 and $97

Interest forbearance Provided Provided Not providedb

Health insurance Individual coverage only; $100

annual deductible. CNS covers

80% of eligible expenses until

participant has paid $1,000 out of

pocket (including deductible) and

then 100%. Limited dental and eye

care coverage

Individual coverage only. CNS

covers actual costs, except for $5

copayment. Limited dental and eye

care coverage

Individual coverage available at no

cost, including dental and eye care

coverage. Subsidized care available for

dependents with some copayments

and deductibles
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Page 15 GAO/HEHS-00-33 AmeriCorps Funding and Benefits

subjective. Entry-level military pay is intended to attract men and women

to service by offering competitive wages. Military personnel receive taxexempt housing and food allowances that are intended to help support

current living standards. In contrast, AmeriCorps participants generally do

not receive housing and subsistence, with the exception of participants in

AmeriCorps*NCCC, which is a residential program. The living allowance

provided in NCCC is minimal, benchmarked at the poverty level, and

considered taxable income.

AmeriCorps Program

Accomplishments Are

Difficult to Measure

CNS generally reports AmeriCorps program results as the amount of

service that AmeriCorps participants perform. CNS also collects and

reports data regarding the enrollment, service completion, and attrition of

AmeriCorps participants. However, these data do not completely measure

AmeriCorps programs’ progress toward two of CNS’ strategic goals: (1) to

make communities stronger through participants’ service and (2) to

improve the lives of those who serve. CNS sponsored a major evaluation of

the AmeriCorps*State/National program’s project activities in the 1994-95

and 1995-96 program years but has not yet used information from this

evaluation to develop useful performance indicators.16 Doing so would help

measure programs’ progress toward strategic agencywide goals.

AmeriCorps Reports on a

Wide Range of Program

Accomplishments

CNS generally reports the results of its programs and activities by

quantifying the amount of services AmeriCorps participants perform.

Services provided by AmeriCorps*State/National participants, for example,

range from tutoring children in pre-school or after-school programs to

assisting community policing programs to building or rehabilitating

housing for the homeless. Participants also recruit community volunteers

for many of these activities. In its fiscal year 2000 performance plan, CNS

states that AmeriCorps*State/National participants have provided benefits

to 33 million Americans in its 4 years of operation.

A CNS-sponsored evaluation of AmeriCorps*State/National program

accomplishments for program years 1994-95 and 1995-96 measured the

extent to which AmeriCorps participants provided child care, taught

16Aguirre International, Making a Difference: Impact of AmeriCorps*State/National Direct

on Members and Communities 1994-95 and 1995-96 (San Mateo, Calif.: 1999).
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students in Head Start and kindergarten, tutored students in grades 1-12,

taught adults GED and basic skills development, immunized adults and

children, completed rehabilitations and renovations of low-income and

other housing, completed new homeless shelters, performed neighborhood

cleanup activities, planted trees in urban areas and rural towns, repaired

dams, and performed other flood control activities. The evaluation

categorizes these accomplishments into four service issue areas: (1)

education, (2) health and human needs, (3) environmental and

neighborhood restoration, and (4) public safety.

AmeriCorps*NCCC services have a special focus on environmental issues,

disaster relief, and leadership for large numbers of volunteers. Participants

serve in state and national forests building trails and providing fire

mitigation services. In addition to providing these services, NCCC

participants tutor children, rehabilitate public schools and public housing

in urban areas, and assist low-income residents of nursing homes with daily

living activities. CNS states in its fiscal year 2000 performance plan that

AmeriCorps*NCCC participants completed 554 service projects in fiscal

year 1998 and served in 42 disasters.

CNS Collects General

Participant Result Data

Each year, CNS collects and reports general data regarding the enrollment,

service completion, and attrition of AmeriCorps participants. CNS’

planning documents contain performance indicators regarding all three

elements.

CNS reports that 61 percent of AmeriCorps participants entering

AmeriCorps during 1994-98 have completed their term of service. Twentyeight percent of the participants left AmeriCorps early, while the remaining

11 percent had not yet completed their service in June 1999 but were still

eligible to. (See table 5.) Of those who left service early, 20 percent left “for

cause” and 8 percent left “for compelling personal reasons.”17 CNS officials

have said that some of those leaving early do so in order to obtain jobs or to

seek other opportunities, and in some cases this is a major purpose of the

program in which an AmeriCorps participant is enrolled.

17Participants may be released for cause or for compelling personal reasons. Participants

released for cause may leave a project early to take advantage of significant opportunities

for personal development or growth, such as educational or professional advancement. For

cause also includes a variety of situations: felony conviction, chronic truancy, or consistent

failure to follow directions. Illness would be a compelling personal reason.
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Page 17 GAO/HEHS-00-33 AmeriCorps Funding and Benefits

Table 5: Enrollment Status and Completion and Attrition Rates for Participants in All AmeriCorps Programs for Program Years

1994-95 to 1997-98

Note: The sum of participants who completed service and participants who ended service early does

not equal the number of enrolled participants because some participants had not yet completed but

were still eligible to complete their terms of service.

a

The number enrolled includes all full-time, part-time, and reduced part-time participants.

Source: CNS, Office of Budget and Trust Operations.

As of June 1999, 78,022 AmeriCorps participants had earned an education

award for service in program years 1994-95 through 1997-98. Of these,

69,126 earned an education award by completing their service. Participants

leaving for compelling personal reasons receive a pro-rated award if they

have completed at least 15 percent of their term before they leave; about

8,896 AmeriCorps participants received a pro-rated award from program

years 1994-98. To date, 62 percent of all those credited with an education

award for service in the first 4 program years have used at least part of their

award. The percentages range from 71 percent of those in the first program

year to 46 percent of those in the fourth program year. (See table 6.)

Table 6: Education Awards Earned and Used in All AmeriCorps Programs in Program Years 1994-95 Through 1997-98

a

Includes awards earned by full-time, part-time, and reduced part-time participants.

Source: CNS, Office of Budget and Trust Operations.

Year

Participants

enrolleda

Completed

service

Percent completed

service

Participants ended

service early

Percent ended

service early

1994-95 25,232 16,433 65% 7,538 30%

1995-96 25,157 15,699 62 8,106 32

1996-97 25,199 16,106 64 7,127 28

1997-98 38,026 20,888 55 8,802 23

Total 1994-98 113,614 69,126 61% 31,573 28%

Year Earned (as of June 1999)a Used

Percent used

(as of June 1999)

1994-95 18,814 13,406 71%

1995-96 18,340 12,747 70

1996-97 18,047 11,417 63

1997-98 22,821 10,494 46

Total 1994-98 78,022 48,064 62%
B-282553

Page 18 GAO/HEHS-00-33 AmeriCorps Funding and Benefits

CNS’ Reporting of Program

Accomplishments Could

Focus More on Results

Although CNS has enumerated and characterized a number of positive

program activities, counting them does not fully measure program results

or outcomes as required by the Government Performance and Results Act

of 1993. Through the framework and expectations of the act, CNS is

required to have strategic plans and set performance goals and indicators

that will effectively measure the accomplishments of AmeriCorps

programs and participants. The act shifted the focus for measuring

progress from inputs and outputs to outcomes and results.18 These plans

must specify results or outcome-based indicators that agencies will use to

measure progress toward their goals. In addition, when the Congress

authorized CNS, it required the agency to (1) set measurable goals for its

programs’ performance, (2) encourage citizens to engage in national

service and reward those who serve with greater educational opportunity,

and (3) provide tangible benefits to the communities in which service is

performed.

Even though CNS has specified its strategic goals, its planning documents

do not contain the corresponding outcome-based indicators that would

allow measurement of progress toward them. CNS’ planning documents

include two strategic goals directly related to the results of service

AmeriCorps participants perform. The two strategic goals state that

communities will be made stronger through participants’ service and that

the lives of those who serve will be improved because of their service

experience. CNS has identified performance indicators to measure

progress toward its strategic goals, including, for example, the average

percentage of expected service time completed by AmeriCorps participants

(retention rate) and the number of AmeriCorps participants enrolled.

Although these indicators measure program inputs and outputs and track

general program initiatives, they do not measure outcomes or program

results such as community or participant benefits. In addition, CNS has not

yet determined performance goals for retention. CNS does have one

indicator—the percentage of participants who successfully complete a

term of service and become eligible to receive an education award—that is

focused on participant benefit. While this indicator is measurable, it is not

accompanied by any additional information that could be used to measure

progress toward CNS’ goal of improving participants’ lives, such as the

18Inputs are measures of the resources available to carry out a program or activity—for

example, the number of teachers or dollars available. Outputs are the amount or quality of

goods, products, or services produced. Outcomes are the results a program achieves.
B-282553

Page 19 GAO/HEHS-00-33 AmeriCorps Funding and Benefits

number of participants who actually use their awards to pay for attendance

at a qualified institution of higher education.

CNS Could Use Evaluation

Results to Develop

Performance Measures in

Its Planning Documents

CNS conducted an assessment of the project accomplishments of

AmeriCorps*State/National in the 1994-95 and 1995-96 program years that,

in part, measured outcomes related to the strengthening of communities

and improvements to participants lives; however, it has yet to use this

information to develop performance indicators in its planning documents.

The evaluation reported on (1) participants who were asked to rate

whether their life skills had improved through their AmeriCorps service

and (2) community representatives who were asked to rate projects on

various components of community strengthening.

During our examination of CNS’ planning documents, we found that CNS

did not use the outcomes or results identified in the evaluation to develop

performance measures as a way to help it evaluate progress toward

achieving its strategic goals. A CNS official acknowledged that previous

study results had not been used to identify or determine measurable

performance indicators for its strategic goals, although he said that results

from ongoing and future studies will be used for that purpose. CNS is

conducting further evaluations in an effort to determine the effect of the

AmeriCorps programs on both communities and participants.

Conclusions CNS’ information and reports show that selected AmeriCorps participant

costs have been reduced since the program’s inception and that benefits

have evolved from AmeriCorps program activities. That being said, CNS’

planning and reporting, as envisioned by the Government Performance and

Results Act of 1993, could be improved to present information that would

better reflect how CNS is meeting its performance goals. While we

recognize that the output measures, as CNS reports, can be useful, we also

believe that CNS’ performance could be more fully assessed with more

outcome-specific measures.

CNS has set goals to have communities benefit and participants’ lives

improve as a result of AmeriCorps service. However, CNS’ planning

documents contain limited performance indicators to help it demonstrate

the extent to which AmeriCorps accomplishments achieve these goals. We

recognize that developing comparable measures for its programs will be

difficult, primarily because of the range of services AmeriCorps programs

provide and the difficulty associated with isolating their effects. However,
B-282553

Page 20 GAO/HEHS-00-33 AmeriCorps Funding and Benefits

CNS could begin working on these measures, building on information it has

already gathered from its evaluation of AmeriCorps*State/National project

activities.

Recommendation We recommend that the Chief Executive Officer of CNS improve the

usefulness of its performance planning by adding performance indicators

that more directly measure how AmeriCorps programs are meeting their

goals to make a difference to the communities served and to improve the

lives of participants.

Agency Comments In commenting on a draft of this report, CNS concurred with our

recommendation and generally agreed with our findings. (CNS’ comments

are printed in appendix II.) In referring to the lack of performance goals for

program participants’ retention, CNS stated that retention is not a matter

easily reduced to across-the-board goals, especially given the decentralized

and highly devolved system of national service called for under its

authorizing legislation. CNS stated that local programs have differing

purposes and strategies and that the differences in their retention rates, if

averaged together, could result in an incorrect assessment of the success of

these programs. We agree and recognize the difficulty in establishing

retention goals. When setting performance goals for retention, CNS can set

them for individual programs as it deems appropriate.

In referring to the concerns we raised about CNS’ reporting under the

Government Performance and Results Act of 1993, CNS said that its

primary reporting strategy is to rely on independent evaluation data on

accomplishments. It said that it intends to provide in a forthcoming report

to the Congress significant outcome data on goals related to how its

AmeriCorps program benefits communities and participants’ lives.

CNS was concerned that our report make clear that the participant cost

information we reported did not include the AmeriCorps*Education

Awards program. We agree and have included a statement to this effect.

CNS also provided a number of technical comments that we incorporated

in the report as appropriate.

As we arranged with your office, unless you announce its contents earlier,

we plan no further distribution of this report until 30 days after the date of
B-282553

Page 21 GAO/HEHS-00-33 AmeriCorps Funding and Benefits

this letter. We will then send copies to the appropriate House and Senate

committees and others who are interested. We will also make copies

available to others on request.

If you have any questions, please call me at (202) 512-7215. Major

contributors to this report include Joseph J. Eglin, Jr., Gene Kuehneman,

Monika Gomez, and Patrick DiBattista.

Barbara D. Bovbjerg

Associate Director, Education, Workforce, and

Income Security Issues
Page 22 GAO/HEHS-00-33 AmeriCorps Funding and Benefits

Appendix I

Scope and Methodology ApApenednxidexiIs

In this appendix, we supplement the information in the report body with

additional details on the data and methods we used to meet our objectives.

We performed our work between April and September 1999 in accordance

with generally accepted government auditing standards.

Funds Available for

AmeriCorps*NCCC

and AmeriCorps*State/

National Programs

We used budget data from the Corporation for National Service (CNS) to

report on the amount and source of funds available for expenditure to

support participants in two selected AmeriCorps programs,

AmeriCorps*National Civilian Community Corps (NCCC) and

Americorps*State/National, including non-CNS costs as appropriate. While

we were asked to report on the costs associated with AmeriCorps

participants, we were not able to report comparable cost information for

AmeriCorps*Education Awards and AmeriCorps*VISTA participants

because information on the non-CNS costs of these programs was not

available. We relied on data from CNS’ budget and grant application

database because the agency was unable to provide reliable information on

its actual program expenditures. The funds that directly support

AmeriCorps participants come from (1) funds CNS provides to grantees on

behalf of participants and the projects, (2) funds CNS provides to the state

commissions on behalf of each participant, and (3) grantee matching

funds.1 Additional funding for the overhead cost associated with

participants comes from (1) CNS for its own administrative costs, (2) CNS

funding to the state commissions for their operating expenses, and (3) state

commission matching funds.2 We were not able to evaluate the funds

available for expenditure in other AmeriCorps programs because CNS

could not provide information on their grantee matching funds.

In developing the information on resources available in program year 1998-

99 for NCCC and State/National participants, we examined CNS’ budget

documentation and reviewed output from CNS’ grants database for all

AmeriCorps programs. Data provided to us from the grants database

included the number of participants, expressed as full-time equivalents

(FTE), that programs expected to support, the amount of grant awards, and

1

Program grantees are required to cover at least 15 percent of a participant’s living

allowance and benefits and 33 percent of the program’s operating costs (such as staff

salaries, travel, and supplies).

2

AmeriCorps state commissions are required to cover half of their administrative expenses.

CNS funds the remainder.
Appendix I

Scope and Methodology

Page 23 GAO/HEHS-00-33 AmeriCorps Funding and Benefits

matching contributions proposed and budgeted by grantees. To verify the

accuracy of the data in CNS’ grants database, we reviewed information

from a random sample of 60 grant files. During that review, we found only

minor differences in the data. These minor discrepancies were within

acceptable limits.

Comparison of

Participant Costs in the

NCCC and Job Corps

CCC Programs

We were asked to compare the cost of AmeriCorps*NCCC with that of

another conservation corps. In selecting a comparison group, we reviewed

relevant literature and interviewed the Director of the National Association

of Service and Conservation Corps. We chose the Job Corps Civilian

Conservation Centers (CCC) because it is a national program with centers

located across the country, whereas state and local conservation corps are

more limited geographically. Additionally, both AmeriCorps*NCCC and Job

Corps CCC are full-time residential programs for youths that are federally

operated and administered. While a few state and local programs were

comparable, we ruled them out because they were AmeriCorps grantees.

We reviewed data from the Department of Labor’s budget to determine the

per participant funds available for Job Corps CCC for program year 1998-

99. We used data from Labor’s budget for comparability with our use of

CNS budget data for NCCC participant funding. Our comparison used

budgeted funds per FTE participant, using each program’s standard method

of calculating FTEs. Job Corps CCC uses “student year” as its measure of

FTE participant for budgeting purposes. We reviewed Job Corps CCC

documents and interviewed officials to collect the information on

programs and participants we used in our comparison. We also reviewed

CNS documents, interviewed officials, and visited the NCCC Capital Region

Campus to gather similar information.
Appendix I

Scope and Methodology

Page 24 GAO/HEHS-00-33 AmeriCorps Funding and Benefits

Comparison of

Benefits for

AmeriCorps

Participants and EntryLevel Military

Personnel

Our comparison of the benefits afforded to entry-level military personnel

and to AmeriCorps participants used information from several sources. We

used published information on military pay and benefits from the 1999

Uniformed Services Almanac.3 We obtained information on benefits

afforded to AmeriCorps participants by reviewing CNS documents and

interviewing agency officials. We used information from the Office of the

Secretary of Defense that explained the principles and concepts of military

compensation in relation to national security objectives.4 We interviewed

CNS officials and reviewed our own related products to identify potential

explanations for the differences in pay and benefits.

AmeriCorps Program

Results

We reviewed CNS’ strategic plan for fiscal years 1997-2002 and its fiscal

year 2000 annual performance plan to identify AmeriCorps program goals

and objectives and to determine how CNS measures and reports

AmeriCorps program results. To aid us in our review, we used our May 1997

and February 1998 congressional guides and our April 1998 evaluators’

guide for assessing performance plans.5 These guides integrated criteria

from the Government Performance and Results Act of 1993, its legislative

history, the Office of Management and Budget’s (OMB) guidance for

developing performance plans (OMB Circular A-11, part 2), and our

guidance on implementing the act. We used the criteria and questions

contained in the guides to help us review the performance goals and

measures in the plan and to assess the plan’s usefulness for CNS and

congressional decisionmakers. In addition, we collected information from

CNS’ education and trust fund data system on participant rates of

completion and attrition and on the “earning” and use of education awards

for program years 1994-98.6 We did not verify the accuracy of the data from

3

1999 Uniformed Services Almanac, 41st annual ed. (Falls Church, Va.: 1999).

4

Office of the Secretary of Defense, Military Compensation Background Papers, 3rd ed.

(Washington D.C.: U.S. Government Printing Office, June 1987), pp. 5-10.

5

See Agencies’ Strategic Plans Under GPRA: Key Questions to Facilitate Congressional

Review (GAO/GGD-10.1.16, May 1997, Version 1), Agencies’ Annual Performance Plans

Under the Results Act: An Assessment Guide to Facilitate Congressional Decisionmaking

(GAO/GGD/AIMD-10.1.18, Feb. 1998, Version 1), and The Results Act: An Evaluator’s Guide

to Assessing Agency Annual Performance Plans (GAO/GGD-10.1.20, Apr. 1998, Version 1).

6

The National Service Trust serves as a secure repository for education awards to be set

aside for AmeriCorps participants.
Appendix I

Scope and Methodology

Page 25 GAO/HEHS-00-33 AmeriCorps Funding and Benefits

CNS’ education and trust fund database. Finally, we reviewed recent

reports by CNS’ Office of the Inspector General, its schedule of pending

and planned program evaluations, and several independent evaluations of

CNS.
Page 26 GAO/HEHS-00-33 AmeriCorps Funding and Benefits

Appendix II

Comments From the Corporation for National

Service ApendxiI
Appendix II

Comments From the Corporation for

National Service

Page 27 GAO/HEHS-00-33 AmeriCorps Funding and Benefits
Appendix II

Comments From the Corporation for

National Service

Page 28 GAO/HEHS-00-33 AmeriCorps Funding and Benefits
Page 29 GAO/HEHS-00-33 AmeriCorps Funding and Benefits

Related GAO Products

National Service Programs: Status of AmeriCorps Reform Efforts

(GAO/HEHS-97-198R, Sept. 3, 1997).

National Service Programs: Enrollment and Education Award Data on

Selected AmeriCorps Projects (GAO/HEHS-97-96R, Mar. 19, 1997).

National Service Programs: Role of State Commissions in Implementing the

AmeriCorps Program (GAO/HEHS-97-49, Feb. 20, 1997).

National Service Programs: AmeriCorps*USA−First Year Experience and

Recent Program Initiatives (GAO/T-HEHS-96-146, May 21, 1996).

AmeriCorps*USA Clarifications (GAO/HEHS-95-267R, Sept. 11, 1995).

AmeriCorps*USA Benefit-Cost Study (GAO/HEHS-95-255R, Sept. 7, 1995).

National Service Programs: AmeriCorps*USA−Early Program Resource

and Benefit Information (GAO/HEHS-95-222, Aug. 29, 1995).

(104967) Letr
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